Take the global imbalance seriously

If global leaders are to make the coming G20 summit in Pittsburgh an effective response to the global financial and economic crisis triggered by the collapse of Lehman Brothers a year ago, they should whole-heartedly take to the table the issue of balancing the world economy.

Though the strong rebound in China and emerging "green shoots" in major developed countries have apparently prevented the world economy from falling off the brink for the moment, policymakers cannot afford to just tinker at the edges of an outdated global financial and economic system. Without addressing global imbalances immediately, the current recovery will be neither solid nor sustainable.

However, media reports show that Western countries are still using the issue of global imbalance merely as a red herring. Worse, by paying only lip service to their promise of opposing protectionism, they are actually discouraging necessary domestic industrial restructuring as part of the global efforts to restore balance to the world economy.